- Image by Eric Hamilton via Flickr
MortgageInsider, Matthew Padilla from OCRegister.com digs into the ironic twist that comes from a new fraud prevention measure.
Apparently, ex-subprime lender NovaStar Financial, disciplined in three States for various licensing and fee infractions, are back in business as an Appraisal Management Company.
The irony is that this market has essentially been created by the New York State Attorney General’s (State Attorneys Generals are the primary mortgage fraud watchdogs) deal with Fannie Mae and Freddie Mac to force lenders to use third-party AMC’s, versus ordering appraisals directly.
Padilla also points to a story by BusinessWeek covering the NovaStar make-over.
Feedback and Opinion Time
Considering this and other reports, like Countrywide executives opening PennyMac. Are we solving problems or shuffling the deck chairs? Are the foxes coming back into the hen house?
Related articles by Zemanta
- NAR Calls for 1-Year Delay on HVCC – Letters to Fannie Mae & Freddie Mac (appraisalnewsonline.typepad.com)
- Housing Appraisals: Still Blowing Bubbles? (businessweek.com)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=17e1396b-33c3-46dc-9a62-a920a678325d)
So are you saying that we are slapping lipstick on a pig? Of course we are, if the dirtbags at countrywide can come back selling something else!
Bill, Good points.. W(why)TF people like the mgmt team at NovaStar even allowed in any real estate related business amazes me. (they were far from the bottom of the barrel in that group)
sharks are sharks.. they will go where the food is.
This is going to be a huge mess. A lender often calls an appraiser that has experience on a certain property. Now with the round robin system we are going to be having appraisers look at properties they have no experience with. This is going to screw up a lot sales.
I'm not too worried about HVCC but the Novastar story is like all the brokers that were shutting down due to not being able to cut it in todays, more honest (with no stated option ARMs), lending environment magically turning into loan mod companies overnight, isn't it?